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SUBJ/ELIMINATION OF PAPER PAYROLL SAVINGS BONDS
FUNCTION//
MILITARY PAY ADVISORY 23/10//
REF/A/LTR/U.S. TREASURY NOTICE//APRIL 2010//
POC/MR. RON ATES/MILPAY MANAGER/CNIC PASS PROGRAMS/
TEL:DSN 288-4315/TEL:COMM (202) 433-4315//
RMKS/1. THE U.S. TREASURY HAS ANNOUNCED PLANS TO ELIMINATE
THE ISSUANCE OF PAPER U.S. SAVINGS BONDS EFFECTIVE 1 OCTOBER 2010.
THIS CHANGE WILL REDUCE THE COSTS ASSOCIATED WITH THE U.S. SAVINGS
BONDS PROGRAM AND SUPPORTS THE TREASURY’S LONG-TERM PLAN TO
ISSUE ALL SECURITIES ELECTRONICALLY.
2. IN ORDER TO CONTINUE PURCHASING SAVINGS BONDS THROUGH
PAYROLL SAVINGS (ALLOTMENTS) SERVICE MEMBERS WILL HAVE TO SET
UP AN ACCOUNT WITH “TREASURYDIRECT” AT WWW.TREASURYDIRECT.GOV.
THIS CONVENIENT AND SECURE WEB-BASED SYSTEM ALLOWS MEMBERS TO
PURCHASE, MANAGE, AND REDEEM ELECTRONIC (PAPERLESS) SAVINGS BONDS
ONLINE 24/7.
3. BEGINNING 01 AUGUST 2010 ALL ALLOTMENT DEDUCTIONS FOR U.S.
SAVINGS BONDS WILL BE PROCESSED AS A SAVINGS (DISCRETIONARY)
ALLOTMENT. REQUIRED INFORMATION FROM THE MEMBER WILL BE:
(A) RECEIVING BANK NAME: TREASURYDIRECT (ALL CAPS, NO SPACES)
(B) ABA NUMBER: 051736158
(C) TREASURYDIRECT ACCOUNT NUMBER:
(D) AMOUNT OF MONTHLY DEDUCTION:
(E) MONTH OF FIRST DEDUCTION:
TO REITERATE, THIS ALLOTMENT DEPOSITS MONEY INTO THE MEMBER’S
TREASURYDIRECT ACCOUNT ONLY, IT DOES NOT AUTOMATICALLY PURCHASE
THE BOND. THE MEMBER WILL BE RESPONSIBLE TO COMPLETE THE PURCHASE
AND MANAGE HIS/HER BOND ACTIVITY ON TREASURYDIRECT.
4. REQUIRED ACTION BY SERVICE MEMBERS. TO PURCHASE U.S. SAVINGS
BONDS THROUGH PAYROLL DEDUCTION SERVICE MEMBERS MUST OPEN AN ACCOUNT
WITH “TREASURYDIRECT”. ONCE AN ACCOUNT HAS BEEN ESTABLISHED,
MEMBERS CAN START THE DEDUCTION USING MYPAY OR PROVIDE INSTRUCTIONS
TO THEIR FINANCE OFFICE TO START THE ALLOTMENT. ONCE MONTHLY
ALLOTMENTS ARE DEPOSITED IN TREASURYDIRECT ACCOUNT, THE MEMBER IS
REQUIRED TO MANAGE ALL ACCOUNT ACTIVITY TO PURCHASE OR CASH IN
THEIR SAVINGS BONDS.THIS IS NOT AN AUTOMATIC TRANSACTION AS IT
IS UNDER THE CURRENT BOND ALLOTMENT STRUCTURE.
5. IMPORTANT DATES:
A. EFFECTIVE 31 JULY 2010 THE ABILITY TO START ANY “AB” FID WILL
CEASE.
B. EFFECTIVE 31 JULY 2010 ALL SINGLE MONTH AB ALLOTMENT DEDUCTIONS
WILL BE TERMINATED.
C. EFFECTIVE 31 JULY 2010 ALL AB MULTIMONTH ALLOTMENTS THAT WILL
NOT PURCHASE A BOND BY 31 AUGUST 2010 WILL BE TERMINATED AND REFUND
POSTED TO THE MEMBER MMPA.
D. EFFECTIVE 31 AUGUST 2010 ALL MULTIMONTH AB ALLOTMENTS WILL BE
TERMINATED.
E. EFFECTIVE 31 AUGUST 2010 ABILITY TO CHANGE AB ALLOTMENTS WILL
BE TERMINATED.
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